India-US Trade Talks May Face Delay as Tensions Rise Over Tariffs and Oil Imports

International News: The trade relationship between India and the United States is going through a tough phase. The possibility of finalizing the first phase of the Bilateral Trade Agreement (BTA) between the two countries by September or October is now uncertain. This is mainly due to the growing tensions over tariffs and India’s oil imports from Russia.

Trump Issues Fresh Warning to India

U.S. President Donald Trump recently said that India may have to face serious consequences. He had earlier called India’s economy “dead.” A team of U.S. officials is set to visit India on August 25 for discussions on the BTA. However, experts feel that the chances of a positive outcome from these talks are now very low.

Trump has repeatedly criticized India for buying Russian oil and has warned of a 25% reciprocal tariff along with additional penalties.

India Stays Firm, Refuses to Give In

According to trade experts, the U.S. has been consistently making strong statements against India for the past week. But India has not requested any rollback or changes in the tariffs. Instead, the Indian government is focusing on adjusting its trade strategies and finding ways to continue growing its exports.

India has made it clear that it will not open key sectors like agriculture, dairy, or fisheries for U.S. access. These areas are considered sensitive and crucial for India's domestic economy.

Conflicting Interests in Trade Talks

During the upcoming trade talks, India is likely to continue with its current stance. On the other hand, the U.S. is expected to push India to reduce duties on items like genetically modified food, dairy products, and farm goods.

Due to these major differences, there is very little hope that the two sides will reach a trade agreement anytime soon.

India Exploring Other Global Markets

To reduce its dependence on the U.S. market, India is now working on trade deals with other countries. In 2025, India is expected to sign agreements with the European Union, New Zealand, Oman, and some countries in South America.

India already has a trade deal with the United Kingdom, which is set to be implemented next year. Once the EU agreement is finalized, India will gain duty-free access to 27 countries, including France, Germany, and Italy.

This will help Indian businesses export their goods without paying high import taxes, which will balance out any loss from reduced trade with the U.S.

Focus on New Export Destinations

Experts say that India has been preparing for this shift for the last two years. The country has explored over 50 new export markets during this period. Although the U.S. was earlier a major trade focus, India is now giving more attention to diversifying its export destinations.

Many also believe that since Trump has only a few years left in his term, India may wait until a new U.S. administration comes to power. This could lead to a fresh start in trade relations and possibly better terms for both nations.

India is showing a strong and independent approach in handling trade challenges with the U.S. Instead of giving in to pressure, it is working to expand its global trade network and protect its economic interests. Whether or not the India-U.S. trade deal moves forward, India is clearly ready to face the situation on its own terms.